Section 17.1 The Promotional Mix

Chapter 17 promotional concepts and strategies Section 17.1 The Promotional Mix Section 17.2 Types of Promotion

The Promotional Mix Section 17.1 IMAGINE What might happen if business did not promote their products?

The Promotional Mix Section 17.1 • Explain the role of promotion in business and marketing. • Identify types of promotion. • Distinguish between public relations and publicity. • Explain elements of a news release. • Describe the concept of the promotional mix.

The Promotional Mix Section 17.1 The combination of personal selling, advertising, direct marketing, sales promotion, and public relations makes up the promotional mix.

The Promotional Mix Section 17.1 Examples of Each Different Type of Promotion

The Promotional Mix Section 17.1 Promotion in Marketing Companies and nonprofit organizations rely on promotion. promotion Decisions about advertising, personal selling, sales promotion, and public relations used to attract customers.

The Promotional Mix Section 17.1 Promotion in Marketing Promotion Methods ProductPromotion InstitutionalPromotion product promotion A promotional method used by businesses to convince prospects to select their goods or services instead of a competitor’s brands. institutional promotion A promotional method used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues.

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix The Promotional Mix PersonalSelling Direct contact Expensive promotional mix A cost-effective combination of advertising, selling, sales promotion, direct marketing, and public relations strategies used to reach company goals.

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix The Promotional Mix PersonalSelling Advertising Direct contact Advertising iseverywhere Expensive advertising A form of nonpersonal promotion in which companies pay to promote ideas, goods, or services in a variety of media outlets.

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix The Promotional Mix PersonalSelling Advertising DirectMarketing Direct contact Advertising iseverywhere Mail Expensive E-marketing Telemarketing Social media direct marketing A type of advertising that sends a promotional message to a targeted group of prospects and customers rather than to a mass audience. social media Electronic media that allows people with similar interests to participate in a social network.

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix The Promotional Mix PersonalSelling Advertising DirectMarketing SalesPromotion Direct contact Advertising iseverywhere Mail Coupons Expensive E-marketing Money-offpromotions Telemarketing Product samples Social media Displays sales promotion All marketing activities, other than personal selling, advertising, and public relations, that are directed at business or retail customers to boost sales.

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix The Promotional Mix PersonalSelling Advertising DirectMarketing SalesPromotion PublicRelations (PR) Direct contact Advertising iseverywhere Mail Coupons News releases Expensive E-marketing Money-offpromotions Social media Telemarketing Publicity Product samples Social media Displays public relations Activities that help an organization to influence a target audience. publicity Bringing news or newsworthy information about an organization to the public’s attention. news release An announcement sent to the appropriate media outlets.

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix Types of Ads

The Promotional Mix Section 17.1 Types of Promotion in the Promotional Mix Put the number of users and nonusers in the appropriate spaces on the graphic organizer. Why or why not do you use these sites? Instagram

The Promotional Mix Section 17.1 The Concept of Promotional Mix Discuss the Six Steps of the Promotional Mix Develop aPromotional Mix

The Promotional Mix Section 17.1 The Concept of Promotional Mix Indicate the location of the ads and compare and rate the ads according to the criteria in the chart. Predict whether the ads created sales and were measured for results.

The Promotional Mix Section 17.1 Section 17.1 1. Explain why promotion is an important marketing function. Promotion is an important marketing function because it is used to inform, persuade, or remind people about a company’s products and its image.

The Promotional Mix Section 17.1 Section 17.1 2. Identify when to use product and institutional promotion. Product promotion is used to convince people to buy or use a certain product. For example, if a company has come out with a new product, they would use product promotion to make people aware of the product. Institutional promotion does not directly sell a product, but is used to create a favorable image, which can result in sales. For example, a company develops a Web site for customers to learn more about the company’s environmental and social responsibility initiatives.

The Promotional Mix Section 17.1 Section 17.1 3. Contrast the push and pull policies in promotional mixes. The push concept depends on the manufacturer to get distribution channel members to purchase products. It relies on a mix of personal selling, advertising, and buying discounts. The pull concept directs promotion to potential consumers or relies on advertising geared to consumers and consumer sales promotions such as coupons, premiums, samples, and demonstrations.

Types of Promotion Section 17.2 CONNECT What promotional tie-ins or loyalty programs have you participated in?

Types of Promotion Section 17.2 • Define sales promotion. • Explain the use of promotional tie-ins, trade sales promotions, and loyalty marketing programs.

Types of Promotion Section 17.2 Sales promotion includes different techniques to increase sales and inform customers about a company’s products.

Types of Promotion Section 17.2 • sales promotions • trade promotions • consumer promotions • coupons • premiums • incentives • promotional tie-ins • loyalty marketing programs • kiosks

Types of Promotion Section 17.2 Examples of Different Types of Sales Promotions

Types of Promotion Section 17.2 Examples of Different Types of Sales Promotions -

Types of Promotion Section 17.2 Sales Promotions Sales promotions are usually supported by advertising activities that include trade promotions and consumer promotions. sales promotion All marketing activities, other than personal selling, advertising, and public relations, that are directed at business or retail customers to boost sales.

Types of Promotion Section 17.2 Sales Promotions trade promotions Sales promotions designed to get support for a product from manufacturers, wholesalers, and retailers.

Types of Promotion Section 17.2 Sales Promotions consumer promotions Sales strategies that encourage customers and prospects to buy a product or service.

Types of Promotion Section 17.2 Sales Promotions Coupons Premiums Deals orPrice Packs coupon A certificate that entitles a customer to a cash discount on goods or services. premium low-cost item given to consumers at a discount or for free.

Types of Promotion Section 17.2 Sales Promotions Incentives ProductSamples Sponsorship incentive A higher-priced product, award, or gift card that is earned and given away through contests, sweepstakes, special offers, and rebates.

Types of Promotion Section 17.2 Sales Promotions PromotionalTie-Ins ProductPlacement LoyaltyMarketingPrograms promotional tie-in Activity that involves sales promotions between one or more retailers or manufacturers; also called cross-promotion or cross-selling. . loyalty marketing program A marketing program that rewards customers by offering incentives for repeat purchases, such as a frequent flyer.

Types of Promotion Section 17.2 Sales Promotions Online LoyaltyMarketingPrograms Point-of-Purchase Displays (Kiosks) kiosk A point-of-purchase display that is a stand-alone structure.

Types of Promotion Section 17.2 Sales Promotions Three Different Types of Premiums and Descriptions

Types of Promotion Section 17.2 Sales Promotions Examples of Each Type of Consumer Promotion

Types of Promotion Section 17.2 Section 17.2 1. Contrast trade promotions and consumer sales promotions. Trade promotions are sales promotion activities designed to gain manufacturers’, wholesalers’, and retailers’ support for a product. Examples include promotional allowances, cooperative advertising, slotting allowances, sales force promotions, buying allowances, trade shows, and conventions. Consumer sales promotion activities are designed to encourage individual customers to buy a product. Examples include cross-selling, coupons, premiums, incentives, samples, sponsorship, product placement, loyalty marketing programs, and point-of-purchase displays.

Types of Promotion Section 17.2 Section 17.2 2. Contrast contests, sweepstakes, special offers, and rebates. Contests and sweepstakes are different types of games. Contests require participants to demonstrate a skill; sweepstakes are games of chance. Special offers and rebates are discounts offered by manufacturers to customers who purchase a product or service during a given time period.

Types of Promotion Section 17.2 Section 17.2 3. Explain why a business would want product placement in entertainment media. Product placement allows viewers to see the product used or hear it discussed in an actual situation in an entertainment medium potentially viewed by millions. Because technology allows viewers to skip over paid TV advertisements or leave the area when ads are playing, product placement ensures that the product will at least be seen.

End of Chapter 17 promotional concepts and strategies Section 17.1 The Promotional Mix Section 17.2 Types of Promotion

Section 17.1 The Promotional Mix